The Federal Reserve kept its benchmark interest-rate target at 3.75% to 4% on Wednesday, choosing to wait for more economic data while warning that inflation remains elevated.

The Federal Open Market Committee approved the decision by a 10-2 vote. The two dissenting members preferred to raise the target range by a quarter of a percentage point.

Inflation remains a concern

In its statement, the committee described economic activity as expanding at a strong pace. It said domestic spending has remained resilient, productivity growth is strong, and job gains have kept pace with the workforce while the unemployment rate has changed little.

Officials also pointed to elevated uncertainty, including geopolitical developments. They said additional information will help determine the policy needed to return inflation to the Fed’s 2% goal.

What the decision means

Wednesday’s action leaves the federal funds target range unchanged. It is not a rate cut, and the statement does not promise a specific move at the next meeting.

The committee said it is continuing its policy of maintaining ample reserves in the banking system. Its stated goals remain price stability and maximum employment.

The full decision is available in the Federal Reserve’s October 28 statement.